J P Morgan Chase/Wamu / refinance

We paid a 350.00 non refundable fee to start our loan process. We have excellent credit and over 50 % equity in our home. We have had our loan with WaMu for 7 years. We started the process in January 2009 with the loan closing date was not till April 23. We were told every thing was "good" for our refinance to a 20 year 4.75%loan. We provided all documents requested, We did not hear from our loan officer until April 16th, Again everything was "good".
On April 22nd we received a call saying he needed a road maintenance agreement, which I scrambled to get. Then He said he needed something called "By law"s attached to it, I never got an exact description of what it was. He said he would file for an exception and an extension . He did this the day AFTER the closing date and sent an email that said the loan was denied because the loan was too old.I copied every email correspondence and typed a letter with documents showing how our loan was handled [ or not handled] The next letter I get is one saying the loan was denied for "insufficient value or collateral-unable to verify identity." This is not what we were told from our local bank. We really feel that this was due to the incredible amount of loans they are trying to process and ours was not a priority since they had nothing to gain by reducing our rate and they had offered a low fee loan which is another story in and of itself. So they got our $350.00 and continue to hold our 6.125 % loan. We were taken and I want to tell as many people as possible after all they took my tax dollars too!

Comments

You told my story. They contacted me in Jan 2009 for a $750.00 fee on my credit card and then approved it in April 2009. They had the home appraised and we have almost 65% equity after recent adjustments. Now they won't return phone call or anything. I have contacted the federal authorities and filed a complaint. Contact the " Comptroller of the currency, administrator of national banks in Houston Texas. You can file with your state as this is a national bank.

We applied for a refi in December 2008 with WAMU. Our credit score is over 820 and we have over 50% equity. Immediately after applying, Chase took over WAMU. For 5 months they kept asking for more and more documents, some on the ridiculous side. Nevertheless, we provided all documents requested and were constantly told there was no problem with the application. After 5 months we received a form letter telling us our application was rejected because of "inadequate or improper collateral." I started making phone calls and eventually worked my way up to the supervisor of the underwriters -- the people who make these decisions. He told me that the rejection was a mistake. There was nothing wrong with our collateral, but they were rejecting the application anyway because our income dropped in 2008. Except our income was still more than adequate to meet all our modest obligations. Since I am a lawyer, I started drafting a complaint to sue Chase. Before I had a chance to file it, I received a letter from a different department of Chase basically saying they knew they blew it and wanted a chance to start over. Long story short, the former WAMU people dropped the ball and never filed the proper paper work with Fanny May to extend the interest rate lock-in when the bank extended it tfor us. As a result, Fanny Mae would not insure the loan so Chase had to find a way to reject the loan. They knew they would lose in court, so they offered to start a new application with no costs whatsoever, and to buy-down the rate for us to approximate our original loan. They had our house re-appraised and everything was moving along when they decided to have the house appraised again (within a week of the first appraisal) and, surprise surprise, it appraised for 20% lower! In a week! And based on the crappiest comps in the crappiest neighborhoods. It is now 9 months since our original application with WAMU and we are still waiting. And waiting. And waiting. If this second round crashes and burns, I will be seeking similarly situated people for major lawsuit. Stay tuned.